In this paper, we investigate the quantum entanglement induced by phase-space noncommutativity. Both the position–position and momentum–momentum noncommutativity are incorporated to study the entanglement properties of coordinate and momentum degrees of freedom under the shade of oscillators in noncommutative space. Exact solutions for the systems are obtained after the model is re-expressed in terms of canonical variables, by performing a particular Bopp’s shift to the noncommuting degrees of freedom. It is shown that the bipartite Gaussian state for an isotropic oscillator is always separable. To extend our study for the time-dependent system, we allow arbitrary time dependency on parameters. The time-dependent isotropic oscillator is solved with the Lewis–Riesenfeld invariant method. It turns out that even for arbitrary time-dependent scenarios, the separability property does not alter. We extend our study to the anisotropic oscillator, which provides an entangled state even for time-independent parameters. The Wigner quasi-probability distribution is constructed for a bipartite Gaussian state. The noise matrix (covariance matrix) is explicitly studied with the help of Wigner distribution. Simon’s separability criterion (generalized Peres–Horodecki criterion) has been employed to find the unique function of the (mass and frequency) parameters, for which the bipartite states are separable. In particular, we show that the mere inclusion of non-commutativity of phase-space is not sufficient to generate the entanglement, rather anisotropy is important at the same footing. We explore the experimental viability of our result through the computation of extractable work for the current situation.